Determine overall financial position of firm

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Why do you think that it is so important when doing a financial analysis to do trending (comparing your key ratios over time) and benchmarking (comparing your most recent ratio to the standard in the industry or some other goal) at the same time in order to determine the overall financial position of a firm? In addition, please explain why it is also important to do this for both the risk and return ratios simultaneously? (Please answer from a stategic viewpoint).

Reference no: EM131810967

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